Auction Brings State Richer Deal On Land

TALLAHASSEE — Pahokee Farms' sweet deal on a sugar cane field was canceled Tuesday when the state auctioned off the lease on the 2,777 acres to the highest bidder.

With virtually no discussion, the governor and Cabinet accepted a bid from Closter Farms to pay $1,165,231 a year, about $427 an acre, for the state-owned land.

Pahokee Farms Inc. has been paying only $125 an acre, although the cane- growing company raised its price during the bidding process and offered the state $337 an acre or $919,562. But that was only the third-highest bid.

The state's action marked the end of an era when rentals of public land in the Everglades Agricultural Area were extended indefinitely. Pahokee Farms' lease, for example, was 24 years old.

Earlier, farming operations ''sort of had an agreement among them -- it was unofficial -- that they wouldn't bid against each other,'' said Elton Gissendanner, executive director of the Department of Natural Resources. ''Those days are over now.

He estimated the state may earn an additional $2 million to $3 million from new leases. The state owns 19,000 acres in the Everglades Agricultural Area.